UK MARKET TALK ROUNDUP: BROKERS COMMENTS

16th Jul 2010 07:29

Broker comments in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 0629 GMT [Dow Jones] Goldman Sachs upgrades easyJet (EXJ.LN) to buy from neutral. Thinks its returns profile merits a share price around 24% higher than it is currently. Says it has competitive strength is its flight network, and expects the company to strengthen this as short-haul operations shrink by necessity. Nudges down the price target to 515p from 520p. Shares closed on Thursday at 414.5p. ([email protected]) 0623 GMT [Dow Jones] Morgan Stanley raises Michael Page (MPI.LN) price target to 485p from 475p. Notes the company delivered gross profit performance ahead of expectations last week. In addition, says the temp staffing market industry data for 2Q has been stronger than expected in France, the US and even the Netherlands. Keeps at equalweight. Shares closed Thursday at 398p. ([email protected]) 0616 GMT [Dow Jones] Morgan Stanley raises its Premier Oil (PMO.LN) target price to 1725p from 1575p following the company's update. It notes the company's intention to accelerate the development of the Catcher well, as well as the farm-in option agreement for the Solan field and continued progress on Huntington. The bank says these all underpin a sustained ramp-up in production. Keeps the stock at overweight. Shares closed Thursday at 1446p. ([email protected]) 0613 GMT [Dow Jones] Jefferies initiates coverage of BT (BT.A.LN) at buy with a 190p price target; Cable & Wireless Communications (CWC.LN) and Cable & Wireless Worldwide (CW.LN) at hold, with 67p and 98p price targets, respectively; TalkTalk Telecom (TALK.LN) at underperform with 113p price target, and Vodafone (VOD.LN) at buy with 175p price target. Raises Virgin Media (VMED) to buy from hold. Has $25.30 price target. Says in the current environment, telecoms offer secure above-inflation dividend yields. Adds that the last two to three years witnessed coordinated price increases from UK fixed-line operators but TV/fiber will offer BT a crucial opportunity to regain retail share. Also says 'pay TV' is changing rapidly, allowing digital subscriber operators to build credible three-play bundles for the first time. ([email protected]) 0606 GMT [Dow Jones] UBS upgrades Invensys (ISYS.LN) to buy from neutral but cuts target price to 320p from 330p. Says: "20% share price underperformance versus the UK Capital Goods sector in three months, combined with the emerging upside in the Controls division, has prompted us to upgrade." Notes leading indicators in controls suggest FY '11 is shaping out to be a decent year and says this may be enough to reverse recent underperformance. However, the brokerage remains prudent and takes a 10% haircut on its Rail valuation, which accounts for the price target cut. Shares flat at 262p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 16, 2010 02:29 ET (06:29 GMT)